What can the internet do for your Business

This article, written by Stuart Davidson, outlines the benefits gained by those businesses who have fully embraced the internet, giving examples and some common mistakes made by the majority of websites.

How websites are currently being used

Most firms are using their website as a brochure, letting people know what they do and describing their products and services. They also give information on their company such as their history and contact details. Just as the company's tangibles (shop-front, vans, offices) are the face of their organisation so too, and even more so, is their company website. As a communication tool, just like adverts, various messages, both clear and subtle, can be delivered. All graphic designers will explain how the use of quality pictures and graphics can give the image of professionalism and build credibility.

Some firms are generating new revenue streams via on-line selling over the internet (commonly known as e-commerce or shopping carts).

With the advancement in technology, and in particular the reduction in costs of telecommunications, companies are now looking at the internet to help them in functional areas of the business, not just sales and marketing, but also within finance, operations and human resources. Looking for ways to incorporate internet technology throughout the company is known as e-business. Whilst large corporations are ahead of the game, the reduced costs and availability of software tools, have enabled smaller companies to embrace the internet and reap the benefits.

The Benefits of using the Internet Effectively

  • Increasing Sales

    Selling products online is an obvious benefit, but do you have knowledge, information, research material or courses which people may be interested in. The Economist magazine sells not only previous articles but all sorts of business reports, such as industry sector updates and competitors analysis.

  • Marketing your products

    Direct marketing campaigns have been around for a long time. Targeting potential customers who have agreed to receive emails on your products and services is a cheaper, more effective faster way of reaching your audience. Your home grown database of email addresses complimented by 'rented lists' can kick-start your e-mail marketing campaign. Whether it's a new product launch, special offers, announcements of forthcoming sales, offers of discount coupons or events, e-mail campaigns are immediate. The results will be seen quickly. You can test your campaign on a select few and then refine your message before full implementation.

    Increasing the search engine visibility (where your site is ranked in the search engines) will drive potential customers to your website, reducing the cost of generating leads.

    The number of 'hits' to your website will peak after an advertising campaign goes live. Comparing the number of visitors to your site after the release will show the success of your ad campaign and this will provide valuable information when deciding whether to rerun those ads.

  • Keeping your customers and increasing customer service

    If the 'cost of sale' to current customers is less than it is for new customers then it is imperative that companies concentrate on retaining customers.

    Could you provide your customers with any online tools? A firm of accountants could provide their clients with an online expenses entry system, or a PAYE calculator, or generate and send automatic email reminders for their client's important due dates.

    Could you provide your customers with tips, installation instructions or industry news?

    If your website is kept up-to-date and aims to serve the needs of your customers then they will want to return to your site regularly. This will enforce your company's presence firmly in the minds of your customers and when they come to make purchasing decisions, guess who they will choose.

  • Increase efficiency and reduce costs

    How much literature do you send through the post - glossy brochures, forms, reports etc? Have you asked your customers and prospects if they would prefer to receive information electronically? One of the main objectives of a PLC's website is to provide company information to their investors, especially the thick Annual Report and Accounts. If investors want a copy of the Report and Accounts, they can get it immediately on-line and it doesn't cost the company a thing. Also, think of the time a company can save if their customers stop requesting forms by phone and instead simply download them from the document management system on the website.

    My brother sells telecoms. He works from home, making appointments etc. He travels 140 miles round trip to his office about once a week. He drops off orders, occasionally may sit through a presentation from the sales director or may learn some new tips from the top salesman. All this could have been done with the use of the company's website. I agree, you cannot take away the face-to-face aspect, but could a visit once a week be replaced by once a month - three extra days a month to sell (or play golf). With the use of multi-media e-presentations companies could distribute corporate videos through their site and after set-up costs distributing 10 or 1000 costs nothing.

    It is always difficult for HR to get the company's business managers together all in one room at the same time for training on relevant topics, such as interview techniques, basic employment law or health and safety. Managers often complain about the lack of concern HR show for their busy schedules. An e-learning course could enable each manager, to go through a course at their own pace and at the time and location of their choice.

Examples of using a website

Here are a few example of how companies are effectively using the internet.

A printing company's strategy was to increase sales with an e-commerce solution. Visitors can get quotes, and design, upload and order stationery etc on-line. They have a survey form for visitors to subscribe to promotions and give feedback, and a FAQ section to save both visitor's and staff time.


This company manage intellectual assets for their clients. Apart from being a very 'business like' and professional looking site, the site provides an interesting HR legal web-based application where, amongst other things, contracts, e.g. employment contracts, can be created on-line.
A firm of accountants have a site which has a wealth of information and provides an impressive list of tools. Every month they write about 7 useful articles on subjects such as financial planning, stock market conditions and tax news. All previous months dating from 1999 are available - that's nearly 500. I counted roughly 60 online tools in the areas of retirement, savings, personal and home, tax and business finance, ranging from "equipment leasing vs buying" to "15yrs or 30yrs Mortgage". The tools and articles are developed by a software developer and are integrated seamlessly into their site.

Common mistakes

First and foremost you need to be crystal clear about what it is you are trying to achieve, what are your objectives? For an accountant who is happy with the number of clients he has, wants to retain those clients and replace the few which leave, increasing customer service and client retention is paramount. A firm of painters and decorators wishing to expand by diversifying into the commercial sector, should aim at driving traffic to their site to generate leads. The majority of sites I analyse show to me that the company have not thought out either what the site is trying to achieve or what they want me, as a visitor, to do. The sites are simply there because the company "thought they ought to have one". They are clearly missing out on an opportunity.

If a product can be bought anywhere, building relationships with customers and satisfying their needs by basing your website on process rather than product is crucial. If your site gives something for free, such as news items, and is kept up-to-date, visitors will return and hopefully buy your products.

If you want people to come to your site then it will need to be seen. This is where most websites fail. Companies have invested money sometimes in great graphics and produced a good looking site, but nobody is coming in and the investment is wasted. Your website needs to be developed in such a way to allow search engines to recognise what your company provides. Optimising your site for search engines combined with paying the search engines to show your site is all part of the ongoing marketing you need.

If you have an e-commerce website with a 'shopping basket', but to make a small increase in the price of a product you have to go back to the company who built the site and pay a technicians fee, you could have lost the profit margin on a lot of those products. For a shopping basket flexibility is everything and being able to add/delete/change products on demand at very little or no cost is crucial.

To build a web presence there are a multitude of skills needed. There is a graphics component and copywriting - building the content. Lifting the content from your brochure is not appropriate for the web. A web developer will need to produce the code with possibly a database designer to put in a 'back-end'. Then there is the ongoing marketing component including search engine visibility. With the availability of easy-to-use tools to build websites many specialists in one of these areas will be able to sell you a website, but will they be able to produce a website that is successful. I spoke to a company recently which went back to the graphics/printing firm who produced their brochure, to commission an e-commerce site. I asked them: Who is handling search engine visibility? How much does it cost for the content management? What happens if they or the hosting company goes bust? Is it your database or are your products incorporated into a third-party's database? The answer to all these questions was "it was not discussed". Yet they still managed to produce a website which was not cheap.

When commissioning a website think of it like any other investment decision. Ask yourself what are the goals and benefits we are trying to achieve and how well do they align to our company's strategy?

   
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